The SPX advanced 1.64 points Friday to close at 1289.43. TOT daily traders took a small scalping loss on the session which reversed the small scalping profit we earned earlier in the week.
Since initiation of this service on September 30, 1993, our daily trader recommendations have gained 8586.32 cumulative SPX points, compared to a gain of 830.50 points in the index itself over the same period.
The super long term perspective for the stock market remains bearish (as it has been since January 2000), and it’s unlikely anything will change that for several years.
The long term model remains neutral. The short term model, on the other hand and somewhat to my surprise, has upticked back to bullish. Repeating, the short term model is currently bullish.
There is very little doubt in my mind that the market is in the process of making a major secondary top, the first having been during the winter of 2000. But like then, major tops take time to form, and markets can be very choppy during the process. With the short term model having moved back into positive territory, it’s a good bet, barring surprising negative news acting as a catalyst, that no waterfall decline is immediately imminent. Indeed, there is a possibility, albeit a small one, of an upside blowoff this coming week.
The daily model is modestly bullish today, contrary to what I would have expected looking at preliminary data Friday afternoon. TOT daily traders are advised to go 200% long into strength only, at SPX 1291 stop. If you go long, use a tight 5 point protective sell stop on the position. If not stopped out, carry the position overnight and into tomorrow.
Thanks for the opportunity to be of service, and I’ll email you again in 24 hours – or sooner if circumstances warrant.
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